This invention relates to a business method for promoting goods and services of providers, such as business owners, through the distribution and tracking of direct mail promotional items. The invention utilizes machine-readable codes applied to the items. When the items are redeemed and the codes scanned, useful information concerning the recipient of the item is acquired and reported. The invention reveals trends relevant to particular customer groups, markets and industries, provides valuable demographics information to business owners, and generates customer and prospects lists for future mailings.
Unlike other direct mail promotions, the present invention designates a targeted group of recipients and preselects multiple items highly relevant to the group for mailing in a bundled cooperative mail package. For example, if the targeted group is first-time parents, each package may include paper coupons for a baby furniture store, diapers and wipes, daycare and pediatrician services, baby formula, and the like. Some recipients in the group may receive more or less items, or even different but related items based on demographics and other valuable information obtained in previous mailings to similarly situated recipients. Similarly, the invention may also generate secondary mailings to recipients based on past item redemptions. For example, if a recipient in a direct mailing which targets new residents redeems an item at a furniture store to purchase a baby's crib, the secondary mailing to that recipient may include direct mail items relating to baby formula, diapers, and the like.
For redeemed items, the invention has reporting features especially useful to business owners and other item providers. For example, the invention may utilize geographic mapping and/or customer segmentation to promote more effective market targeting. Customer segmentation is the subdivision of a market into discrete customer groups that share certain characteristics. Customer segmentation can be a powerful means to identify unmet customer needs. Once the needs are identified, companies can then outperform the competition by developing uniquely appealing products and services. Customer segmentation is most effective when a company tailors offerings to segments that are the most profitable and serves them with distinct competitive advantages. This prioritization can help companies develop marketing campaigns and pricing strategies to extract maximum value from both high- and low-profit customers. A company can use Customer segmentation as the principal basis for allocating resources to product development, marketing, service and delivery programs.
Customer Segmentation typically involves one or more of the following:
(a) dividing the market into meaningful and measurable segments according to customers' needs, their past behaviors or their demographic profiles;
(b) determining the profit potential of each segment by analyzing the revenue and cost impacts of serving each segment;
(c) targeting segments according to their profit potential and the company's ability to serve them in a proprietary way;
(d) investing resources to tailor product, service, marketing and distribution programs to match the needs of each target segment; and
(e) measuring performance of each segment, and adjusting the segmentation approach over time as market conditions change decision making throughout the organization.
In the context of the present invention, customer segmentation is especially useful for prioritizing new product development efforts, developing customized marketing programs, choosing specific product features, establishing appropriate service options, designing an optimal distribution strategy, and/or determining appropriate product pricing.